Polyair Inter Pack Inc.

Polyair Inter Pack Inc.

January 19, 2007 15:26 ET

Polyair Inter Pack Inc. Announces Approval of Canadian Pool Subsidiary's Proposal to Its Creditors

TORONTO, ONTARIO--(CCNMatthews - Jan. 19, 2007) - Polyair Inter Pack Inc. ("PPK" or the "Company") (TSX:PPK)(AMEX:PPK) announced today the Plan of Arrangement of its Canadian pool subsidiary, Cantar Pool Products Limited, was approved at a meeting of creditors last week and by the Ontario Superior Court of Justice. This subsidiary, which ceased operations in October 2006, had sought protection under the Companies' Creditors Arrangement Act in order to complete the sale of its remaining operating assets and to put forward to its creditors a Plan of Arrangement which would provide for a settlement of their claims. The approved Plan of Arrangement is expected to be implemented shortly.

The Plan of Arrangement does not affect Polyair's packaging business which continues to operate as a standalone business through separate subsidiaries in the normal course.

Polyair Inter Pack Inc. (www.Polyair.com) in its Polyair Packaging division manufactures and distributes a wide range of protective packaging products. These products are sold to distributors and retailers across North America. The company operates nine manufacturing facilities, seven of which are in the US where it generates the majority of its sales.

Certain information included in this release contains statements that are forward looking. Such forward-looking information involves risks and uncertainties that could significantly affect anticipated results in the future. We caution that forward-looking statements should not be regarded as a representation by the company that the future plans, estimates, or expectations contemplated by us will in fact be achieved. Please refer to the company's reports filed on SEDAR (www.sedar.com) and EDGAR (www.sec.gov/edgar.shtml) for a description of the business environment in which it operates and important factors that may materially affect its results. Polyair Inter Pack is not under any obligation, and expressly disclaims any such obligation, to update or alter its forward-looking statements.

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